The disclosures herein relate generally to establishing insurance rates for customers of a company, and more particularly to a system and method for establishing rates for a vehicle insurance policy.
Establishing criteria for setting insurance rates is very complex and requires the consideration of a number of factors. Various combinations of factors have been considered in the past. It is important that the factors used are able to produce reliable results and consistent results. With respect to vehicle insurance, a vehicle includes any device or structure for transporting persons or things, and may include self-propelled vehicles such as, for example, an automobile, a truck, a motorcycle or a boat.
Therefore, what is needed is a combination of factors that are consistently reliable in establishing fair rates for vehicle insurance for both new and renewal coverage, and more particularly, automobile insurance.